Let me find your new home!http://www.michaeltotman.com
Buy and Sell with Michael TotmanWed, 31 Oct 2018 13:51:38 +0000en-UShourly1https://wordpress.org/?v=4.9.4Buy a Home in Worcester MA | Where Are Home Values Headed Over The Next Few Years?http://www.michaeltotman.com/general/buy-a-home-in-worcester-ma-where-are-home-values-headed-over-the-next-few-years-305/
http://www.michaeltotman.com/general/buy-a-home-in-worcester-ma-where-are-home-values-headed-over-the-next-few-years-305/#respondWed, 31 Oct 2018 13:51:38 +0000http://www.michaeltotman.com/?p=305If you live in Massachusetts, specifically near Worcester, you may know there has been a lot of buzz about this area lately, so much so that it is now recognized as an up and coming area to live in national discussions.

There are many questions about where home prices will be next year as well as where they may be headed over the next several years to come. We have gathered the most reliable sources to help answer these questions:

The Home Price Expectation Survey – A survey of over 100 market analysts, real estate experts, and economists conducted by Pulsenomics each quarter.

Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments.

Freddie Mac – An organization whose mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extending to all communities from coast to coast.

The National Association of Realtors (NAR) – The largest association of real estate professionals in the world.

Fannie Mae – A leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets always.

Here are their projections of prices going forward:

Bottom Line

Every source sees home prices continuing to appreciate – just at lower percentages as we move through the next several years.

If you’re interested in buying a home in Worcester, MA any time soon then now may be the perfect time! Give me and my team a call today! I’m Mike Totman at Bridge Realty, 508.386.5000!

]]>http://www.michaeltotman.com/general/buy-a-home-in-worcester-ma-where-are-home-values-headed-over-the-next-few-years-305/feed/0Buy a Home in Massachusetts | What It Costs To NOT Own Your Homehttp://www.michaeltotman.com/general/buy-a-home-in-massachusetts-what-it-costs-to-not-own-your-home-284/
http://www.michaeltotman.com/general/buy-a-home-in-massachusetts-what-it-costs-to-not-own-your-home-284/#respondMon, 15 Oct 2018 10:58:44 +0000http://www.michaeltotman.com/?p=284Are you a renter in Massachusetts but you think you might want to buy a house soon? What’s holding you back? Now is a great time to buy a home in Massachusetts and I’d like to talk with you about why that is.

Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for the entirety of America’s existence.

“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Less than a month ago, we explained that a family that purchased an average-priced home at the beginning of 2018 could build more than $49,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!

Bottom Line

Owning your home has many social and financial benefits that cannot be achieved by renting.

If you’re interested in what it would take to buy a home today then give me a call or check out my free guides on what you should consider when buying a home. I’m Mike Totman with Bridge Realty, 508.386.5000!

]]>http://www.michaeltotman.com/general/buy-a-home-in-massachusetts-what-it-costs-to-not-own-your-home-284/feed/0Sell My Home In Massachusetts | Are Home Prices Softening Or Falling?http://www.michaeltotman.com/general/sell-my-home-in-massachusetts-are-home-prices-softening-or-falling-277/
http://www.michaeltotman.com/general/sell-my-home-in-massachusetts-are-home-prices-softening-or-falling-277/#respondTue, 09 Oct 2018 14:42:02 +0000http://www.michaeltotman.com/?p=277So what’s going on with Massachusetts real estate? Is the sky starting to fall, are we only just beginning, what do all these crazy headlines mean?

We are beginning to see reports that more housing inventory is coming to the market and that buyer demand may not be increasing at the same pace it did earlier this year. The result will be many headlines written to address the impact that these two situations will have on home values.

Many of these headline writers will confuse “softening home prices” with “falling home prices,” but there is a major difference between the two.

The data will begin to show that home values are not appreciating at the same levels as they had over the last several years (softening prices). This does NOT mean that prices are depreciating (falling prices).

Here is an example: Over the last several years, national home values increased by more than 6% annually. If you had a home worth $300,000 at the beginning of the year, it would be worth $318,000 by year’s end. If the appreciation rate “falls” to 4%, that $300,000 house would be worth $312,000 at the end of next year – a $6,000 difference.

The price of the home did not fall. It just didn’t increase at the level it had the previous year.

Appreciation rates are projected to end this year at approximately 5%, and then drop to somewhere between 4-5% next year. This drop in appreciation rate will cause home price increases to soften.

Again, this does not mean that home prices will depreciate, but instead that they will appreciate more slowly.

Bottom Line

Be careful when reading headlines that discuss home values. Some headline writers will be legitimately confused and will use the word falling in place of softening. Others will realize that the headline “Home Prices are Falling!” will get more clicks than “Home Prices are Softening” and will intentionally write the more compelling headline. Read the article. If the word depreciation is not mentioned, home values are not falling.

If you want the real scoop on what’s happening with real estate in your area then give me and my team a call. I’m Mike Totman at Bridge Realty, call me at 508.386.5000 today!

]]>http://www.michaeltotman.com/general/sell-my-home-in-massachusetts-are-home-prices-softening-or-falling-277/feed/0How Much Has Your Home Increased In Value In The Last 12 Months?http://www.michaeltotman.com/general/how-much-has-your-home-increased-in-value-in-the-last-12-months-271/
http://www.michaeltotman.com/general/how-much-has-your-home-increased-in-value-in-the-last-12-months-271/#respondThu, 04 Oct 2018 16:02:20 +0000http://www.michaeltotman.com/?p=271Here in Massachusetts the economy is doing very well with strong job prospect, low unemployment, and solid real estate prices. But if you’ve thought of selling your home for one reason or another but balked because you didn’t think you had enough equity then you might want to reconsider listing now.

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.2% year-over-year.

CoreLogicbroke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from July 2017 to July 2018 (the latest data available).

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor which determines how much your home has appreciated over the course of the last year.

Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.

Bottom Line

If you are planning to list your home for sale in today’s market, let’s get together to go over exactly what’s going on in your area and your price range.

Now is a great time to sell your home in Massachusetts and either move up to a larger house or downsize to a smaller home. Whatever your reasons, I’m here to help! Give me and my team at Bridge Realty a call today. I’m Mike Totman, 508.386.5000!

]]>http://www.michaeltotman.com/general/how-much-has-your-home-increased-in-value-in-the-last-12-months-271/feed/0Is Home ownership Hereditary?http://www.michaeltotman.com/general/is-home-ownership-hereditary-265/
http://www.michaeltotman.com/general/is-home-ownership-hereditary-265/#respondTue, 25 Sep 2018 18:46:41 +0000http://www.michaeltotman.com/?p=265Many things, both good and bad, are passed down to us from our parents. We always want to be the generation to break out of that cycle and go on to familial glory right? “I’m the first of my family to graduate…” “I’m the first of my family to be a professional….” the list goes on. Well it turns out home ownership may be one of those things passed down to us from our family too. If you want to perpetuate or break the cycle in your family then reach out to me and let’s go buy a house in Massachusetts!

There are many things that factor into the decision to buy a home. New research from the Urban Institute suggests that one of those things may be inherited from your parents.

Children are More Likely to Own a Home if Their Parents Did

According to an analysis of millennial homeowners, the homeownership rate of those whose parents rent their homes is 14.4%, while the rate amongst millennials whose parents are homeowners is 31.7%!

“A young adult’s odds of homeownership are highly correlated with their parent’s homeownership.

Without controlling for such factors as age, income, education, marital status, and race or ethnicity, there is a 17 percentage-point gap between the homeownership rate for young adults whose parents are renters and young adults whose parents are homeowners.”

The study also revealed that as a parent’s net worth increases, so does the likelihood that their child will own a home. These two findings are not surprising as we know from the Survey of Consumer Financesthat a homeowner’s net worth is 44x greater than that of a renter.

So, a parent who is a homeowner will have more wealth which will, in turn, increase the chances that their children will own their own homes in the future.

Below is a breakdown of the relationship between a parent’s wealth and a millennial’s likelihood to own a home.

The Good News: The high homeownership rate amongst baby boomers (likely the parents of many millennials) is a great sign that millennials will want to own homes. We are already seeing this in the high-demand environment that we are currently experiencing in the starter and trade-up markets.

Bottom Line

Even though millennials took longer than many of the generations before them to start home searches of their own, the data shows that they will not be waiting much longer!

So if you’d like to buy your first home or want to move up to bigger and better (or even downsize) then give me and my team a call. I’m Mike Totman at Bridge Realty, 508.386.5000!

There are plenty of reasons to buy a home in Massachusetts; it’s sound financial planning, it’s nice to plant roots, and you have more control over your housing. Here are the top four reasons for buying a home in Berlin, Boylston, Hudson, Massachusetts, or anywhere!

We often talk about why it makes financial sense to buy a home, but more often than not, the emotional reasons are the more powerful or compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones.

1. Owning your home offers you the stability to start and raise a family

Between the best neighborhoods and the best school districts, even buyers without children at the time of purchase may have these things in mind as major reasons for choosing the locations of the homes that they purchase.

2. There’s no place like home

Owning your own home offers you not only safety and security, but also a comfortable place that allows you to relax after a long day!

3. You have more space for you and your family

Whether your family is expanding, an older family member is moving in, or you need to have a large backyard for your pets, you can take this all into consideration when buying your dream home!

4. You have control over renovations, updates, and style

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Tired of paying an additional pet deposit in your apartment building? Or maybe you want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t do just that in your own home?

Bottom Line

Whether you are a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that make a house a home.

]]>http://www.michaeltotman.com/general/the-four-real-reasons-to-buy-a-home-259/feed/0Sell My Home In Massachusetts: How To Get The Best Price For Your Homehttp://www.michaeltotman.com/general/sell-my-home-in-massachusetts-how-to-get-the-best-price-for-your-home-255/
http://www.michaeltotman.com/general/sell-my-home-in-massachusetts-how-to-get-the-best-price-for-your-home-255/#respondFri, 24 Aug 2018 13:59:04 +0000http://www.michaeltotman.com/?p=255

You put a lot of effort into making your house a home, and now you’d like to reap some rewards by selling your house in Massachusetts and moving on to the next stage in life. So how can you make sure you get the most out of this deal?

Every homeowner wants to make sure that they maximize their financial reward when selling their home, but how do you guarantee that you receive the maximum value for your house?

Here are two ways to ensure that you get the highest price possible.

1. Price it a Little Low

This may seem counterintuitive, but let’s take a look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation when, in actuality, it just dramatically lessens the demand for their houses (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, the seller will not be fighting with a buyer over the price but will instead have multiple buyersfighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive as the seller may think that he or she will make more money by avoiding a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by real estate professionals.

A study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs, when compared to MLS sales of similar properties, is about 5.5%. Sales in 2017 suggest the average sales price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

For a free home price analysis give me and my team a call, we can make sure your home is priced right and you get the best price possible! I’m Mike Totman at Bridge Realty, 508.386.5000.

]]>http://www.michaeltotman.com/general/sell-my-home-in-massachusetts-how-to-get-the-best-price-for-your-home-255/feed/0Demand for Homes to Buy Continues to Climbhttp://www.michaeltotman.com/general/demand-for-homes-to-buy-continues-to-climb-240/
http://www.michaeltotman.com/general/demand-for-homes-to-buy-continues-to-climb-240/#respondFri, 03 Aug 2018 13:14:54 +0000http://www.michaeltotman.com/?p=240If you want to buy a home in Massachusetts you may find it more difficult than you’d have thought. That’s because there aren’t as many homes for sales as their would be in a normal market.

If you’re thinking of selling your house in Massachusetts this year, it may benefit you to do so now as the low supply could help pump up prices.

Across the United States, there is a severe mismatch between the low number of houses for sale and the high demand for those houses! First-time homebuyers are out in force and are being met with a highly competitive summer real estate market.

According to the National Association of Realtors (NAR), the inventory of homesfor sale “has fallen year-over-year for 36 consecutive months,” and now stands at a 4.1-month supply. A 6-month supply of inventory is necessary for a balanced market and has not been seen since August of 2012.

NAR’s Chief Economist Lawrence Yun had this to say,

“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand.

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

Is There Any Relief Coming?

According to the CoreLogic’s 2018 Consumer Housing Sentiment Study, four times as many renters are considering buying homes in the next 12 months than homeowners who are planning to sell, “which is the crux of the available housing-supply imbalance.”

As more and more renters realize the benefits of homeownership, the demand for housing will continue to rise.

Do homeowners realize demand is so high? With home prices rising across the country, homeowners gained over a trillion dollars in equity over the last 12 months, with the average homeowner gaining over $16,000!

The map below shows the breakdown by state:

Many homeowners who have not thought about listing their homes may not even realize how much equity they have gained, or the opportunity available to them in today’s market!

Bottom Line

If you are one of the many homeowners across the country who hasn’t quite found their forever home, now may be a great time to list your house for sale and find your dream home!

If you want to sell your home in Massachusetts now then give me and my team a call. I’m Mike Totman at Bridge Realty, 508.386.5000. Call us today!

]]>http://www.michaeltotman.com/general/demand-for-homes-to-buy-continues-to-climb-240/feed/0First-Time Home Buyers Continue to Put Down Less Than 6%!http://www.michaeltotman.com/general/first-time-home-buyers-continue-to-put-down-less-than-6-245/
http://www.michaeltotman.com/general/first-time-home-buyers-continue-to-put-down-less-than-6-245/#respondTue, 31 Jul 2018 12:58:13 +0000http://www.michaeltotman.com/?p=245In Massachusetts, where the median home value is close to $400,000, a 20% down payment can be a challenge for a first time home buyer.

There is a myth that you need 20% to buy a home, the data shows that we continue to put down less than a 6% down payment!

According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time homebuyers purchased their homes with down payments below 6% in 2017.

Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying, but in March, 71% of first-time buyers and 54% of all buyers put less than 20% down.

“The fact that we now have four consecutive quarters where owner households increased while renters households fell is a strong sign households are making the switch from renting to buying.

Households under 35 – which represent the largest potential pool of new homeowners in the U.S. – have shown some of the largest gains. While they only make up a third of all homebuyers, the steady uptick in their homeownership rate over the past year suggests their enormous purchasing power may be finally coming to [the] housing market.”

It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.

Bottom Line

If you are one of the many first-time buyers unsure of whether or not they would qualify for a low-down payment mortgage, let’s get together and set you on your path to homeownership!

You may be more qualified than you think, and I can help you determine just how much home you can buy! Call me and my team today! I’m Mike Totman at Bridge Realty, 508.386.5000.

]]>http://www.michaeltotman.com/general/first-time-home-buyers-continue-to-put-down-less-than-6-245/feed/0Want to List Your Home For Sale in Massachusetts? Here’s the #1 Reason to Do Sohttp://www.michaeltotman.com/general/want-to-list-your-home-for-sale-in-massachusetts-heres-the-1-reason-to-do-so-232/
http://www.michaeltotman.com/general/want-to-list-your-home-for-sale-in-massachusetts-heres-the-1-reason-to-do-so-232/#respondThu, 19 Jul 2018 13:05:49 +0000http://www.michaeltotman.com/?p=232

It’s a sellers market here in Massachusetts and if you’ve ever thought about selling your home for any reason then now may be the time! Let’s look at some national statistics to see exactly why now is the best time to list your home for sale!

If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes for Sale

The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun recently commented on the current lack of inventory:

“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand.

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

The latest Existing Home Sales Report shows that there is currently a 4.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market, and 6.1% lower than last year’s inventory level.

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

Bottom Line

Let’s get together to discuss the supply conditions in our neighborhood so that I can assist you in gaining access to the buyers who are ready, willing, and able to buy right now!

I can help position your house for the best possible sale right now! If you’ve ever considered selling, or just want to know where you’d stand in the market, then give me a call. I’m Mike Totman at Bridge Realty, 508.386.5000!